Demand for kitted-out units depends on area

AS A PROPERTY owner any decision to furnish your apartment or not should depend on local demand, says Dexter Leite, Pam Golding Properties rental manager for the Cape.

Landlords are advised to research the area’s needs before deciding.

“Generally, demand for unfurnished, long-term rentals of 12 months or longer is far greater; however, a fair number of tenancies concluded at the top-end of the market, mainly on the Atlantic seaboard, tend to be furnished.”

Ultimately, it depends on tenant needs and demand.

Property owners must make tough decisions as to what perks they offer tenants, says Lew Geffen Sotheby’s International Realty’s Lisa Hendricks. But when deciding between furnished or unfurnished, the location of the property, the market and target demographic should be considered.

“Properties in an area with students, or corporate travellers, will have a larger pool for furnished homes. Furnishings also make home photos more appealing, allowing people to visualise what their lives might look like.

“In upmarket suburbs such as Fresnaye, Clifton and Sea Point, where luxury furniture and interior design influence is included, furnished apartments are popular. Business travellers might not be able to afford five-star hotels every night, but they want a place to remind them of home, offering sophistication and security.”

Furnished properties in City Bowl areas such as Gardens, Vredehoek, Tamboerskloof and Vredehoek are in high demand, being near colleges and universities, says Debra Levin, a rental specialist for Lew Geffen Sotheby’s International Realty on the Atlantic Seaboard. “Properties in the City Bowl also attract tenants; convenience is a key factor.”

The quality of furniture, interior finishes and appliances, are also important, says Levin.

“A beautiful apartment or house on the Atlantic seaboard with old appliances and dated furniture will be less appealing and provide lower returns. Conversely, a luxuriously furnished one-bedroom flat or studio appealing to the younger generation, may make the property unaffordable.

“In winter or out-of-season periods, some furnished flats, especially on the Atlantic Seaboard, may be rented on a short-term basis if body corporate rules allow. This gives owners time to find a good long-term tenant and covers monthly costs; an unfurnished apartment won’t generate income during quiet months.”